The Bangladesh Bank on Thursday relaxed the letter of credit (LC) margin rate for importing lubricants to maintain a smooth supply for industrial and power production.
A central bank notice issued in this regard further states that banks can impose LC margin on the basis of banks-customer relationship.
The previously imposed 75 per cent to 100 per cent cash margin for opening LCs on cars, electronics, gold, precious metals, RMG, and pearls, among other items will remain in effect until further notice, the notice adds.
On December 10, the central bank directed banks to open LCs for importing eight essential products, including edible oil, chickpeas, pulses, peas, onions, spices, sugar and dates, at a minimum margin in order to ensure adequate supply of the items on the market in Ramadan.
The opening of LCs has been falling in recent months after the authorities imposed several conditions on imports as part of austerity measures. In November, LCs worth $4.02 billion got opened, down from $4.74 billion a month ago, show latest data from the Bangladesh Bank.
